Halfords sizes up 12 potential bid targets

Halfords, the bicycle and auto parts retailer, has around 12 potential
acquisition targets in its sights as it looks to expand beyond its
traditional product areas.

By James Hall

5:30AM BST 11 Jun 2010

News of the targets was revealed as Halfords reported full-year pre-tax profits of £117.1m, up 26pc on last year. Like-for-like sales rose by 1.3pc over the year to April 2.

Halfords Group

David Wild, chief executive, said: "We have 10 or 12 assets under investigation. We keep a long list. Sometimes they are sold, sometimes they are not as good on the inside as they look on the outside. It could take a year, it could take longer."

Mr Wild would not comment on the identity of the companies Halfords is looking at.

Earlier this year Halfords acquired Nationwide Autocentres, the independent car servicing and repair operator, for £73.2m. The group has started the process of rebranding the Autocentres under the Halfords name, beginning with three sites in Derby and one in Solihull. The centres offer MOTs, repairs and servicing. Car maintenance is a £9bn sector in the UK and is currently dominated by independent players.

Halfords sells one in three bicycles in the UK and has a growing car maintenance, camping and accessories business. Sam Hart, analyst at Charles Stanley, said that net debt declined by £21m to £156m over the year, driven by £108m of free cash flow, which more than offset the acquisition of Nationwide.